Sioux City-Terra Industries Inc. and Kemira GrowHow Oyj on Sept. 14 confirmed the formation of a joint venture company, GrowHow UK Ltd., combining their fertilizer and associated process chemicals businesses in the United Kingdom and the Republic of Ireland. Completion of the joint venture follows confirmation from the UK Competition Commission that it has concluded its review and approved the transaction. The move is designed to secure a sustainable, long-term base for manufacturing fertilizer and process chemicals in the UK. The combined business will produce ammonium nitrate, which is the main nitrogen fertilizer consumed in the UK, as well as compound fertilizers to service both the UK and Ireland markets. GrowHow UK Limited will be owned 50/50 by Kemira GrowHow and Terra, and will include Kemira GrowHow’s site at Ince and Terra’s sites on Teesside and Severnside. The annual turnover of the operations included in the joint venture exceeded 500 million euros in 2006. Through the joint venture, Kemira GrowHow and Terra expect to create significant cost and operational synergies to enhance their ability to service and compete in increasingly challenging markets. Kemira GrowHow UK Limited is the largest UK producer of compound fertilizers, and Terra Nitrogen (UK) Limited is the largest UK producer of ammonium nitrate.
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